Jordan on Wednesday recalled its ambassador to Israel in protest against what it described as Israeli 'violations' in Beit-ul-Moqaddas and its holy sites, the first time it has done so since the countries made peace in 1994, Jordanian officials said.

Israel last week closed for a day the compound housing the Al-Aqsa Mosque, Islam's third holiest site, amid increasing Israeli-Palestinian violence around it. The move infuriated Jordanian King Abdullah, who is custodian of the sacred compound, Reuters reported.

The decision to recall the ambassador was taken "in protest at the increasing and unprecedented Israeli escalation in the Noble Sanctuary, and the repeated Israeli violations of Jerusalem (Beit-ul-Moqaddas )", Jordan's Petra news agency said.

Also on Wednesday, a Palestinian rammed his car into pedestrians in central Beit-ul-Moqddas on Wednesday in the second attack of its kind in two weeks, killing one person and fuelling concerns of another Palestinian uprising.

The driver, who was shot dead by police, was identified by an Israeli security official as Ibrahim Akari from East Beit-ul-Moqddas.

The Noble Sanctuary is the Islamic name for the compound housing the Al-Aqsa mosque. The site in Beit-ul-Moqaddas' walled Old City is known to Jews as the Temple Mount and is the holiest place in Judaism.

Palestinians and Israeli police have been clashing on a daily basis in the streets of East Beit-ul-Moqaddas and the Old City compound over the past few weeks. Jordan also plans to lodge a formal complaint in the UN Security Council about Israeli actions in Beit-ul-Moqaddas, a Jordanian government spokesman said.

Israel shut the compound for one day last Thursday following an attack on a far-right Israeli-American activist who was shot and seriously wounded after speaking out against a ban on Jews praying at the site.